Hedge fund AlphaTraI says US labor data, expected to be released today, could negatively impact the price of Bitcoin. According to him, if the new data shows rising employment figures, BTC will risk falling below $15,000.
Bitcoin may see below $15,000 due to employment data
Bitcoin (BTC) is at the mercy of the bears as it continues its journey through the crypto winter. A few analysts claim that the bottom is already priced in. However, the CIO of hedge fund AlphaTraI continues to suggest that the markets have yet to see the worst. According to him, it is possible for the leading cryptocurrency to crash due to today’s employment data.
Max Gokhman, Chief Investment Officer of asset management company AlphaTraI, spoke recently in an interview. According to Gokhman, if US employment data shows high values, it will create a domino effect in the markets. Also, this has the potential to eventually send Bitcoin to a 2-year low. Accordingly, the leading cryptocurrency is at risk of falling below $ 15,000. Markets are waiting for the Non-Farm Employment (NFP) data to be released today at 15:30 CET.
Today’s report is crucial for the Fed’s decisions
AlphaTraAI, like many crypto firms, succumbed to the bear market in August. In late August, the San Diego-based hedge fund decided to abandon its crypto holdings. Gokhman also said what steps the FED would take in case of high employment figures. According to him, the Fed will likely move towards further rate hikes in response to higher employment rates. This will jeopardize the $20,000 support that the Bitcoin price is currently barely holding. Additionally, the rate hike will likely trigger a drop in the traditional and crypto markets.
$20,000 support is critical
Gokhman noted that Bitcoin’s $20,000 support level is a crucial point in the price. The expert says that a possible interest rate hike announcement from the FED may lower the BTC price. According to him, it is possible that the fear of the interest rate hike will trigger the sale that will send BTC below $20,000. If Bitcoin breaks below the $20,000 support, an unsupported collapse is also among the possibilities, pushing the asset further down.
Gokhman says the community should consider $15,000 if this scenario happens. QANDA’s market analyst Edward Moya shares the same sentiments as Gokhman. The analyst says that even if he does not predict $15,000, a drop below $20,000 will pave the way. According to him, a drop below $20,000 will be due to higher employment data.
Bitcoin could return to 2020 bottoms
cryptocoin.com As we reported, BTC last saw $15,000 in November 2020. The crypto community already knows about BTC’s reaction to reports of interest rate hikes, which is not cool. On August 26, Fed Chairman Jerome Powell stated that more rate hikes are necessary to combat rising inflation in the past. This comment by Powell dropped BTC from the $21,700 high at the time. The decline continues into the weekend as BTC dropped below $20,000 for the first time in August.
